Fidelity in €80m European spree

Fidelity Worldwide Investment has completed five real estate acquisitions across Europe totalling almost €80 mln for its Eurozone Fund.

The purchases comprise an office and retail building at Kurfürstendamm in Berlin, a logistics asset leased to DHL in Stuttgart and a storage facility in Munich as well as two offices in Paris and Hoofdoorp respectively.

In Berlin, a near-prime asset was acquired at just over 5%, reflecting the under-rented nature of the property. In Paris, the investor bought an office building let in its entirety to US corporation Lexmark. Fidelity said the Paris deal reflected a yield of 7.5%.

In Hoofddorp, a new office building designed to BREEAM Very Good standard and let to Sonion was purchased for a yield of 8.4%.

'With acquisition yields often in excess of 7%, the market today presents a rare opportunity to lock into highly attractive assets at very favourable prices,' said Keith Sutton, director of European real estate in Fidelity’s Munich office. 'As equity investors, we are welcomed by vendors who seek a reliable counter-party,' he added.

The company has already won new equity commitments this year, and expects to invest a further €150 to €200 mln for this fund alone during the course of 2013.